In the second quarter of this year, the panel prices in July and August will increase by at least 10% per month, and the rise will continue to September, driving the development of key component polarizers. Industry insiders believe that the price of polarizers will stabilize until the first quarter of next year. As the market conditions improve, the capacity utilization rate of Taiwan's two polarizers has increased significantly simultaneously, seizing business opportunities.
Benjiao Materials
Benjiao Materials pointed out that the current panel supply chain inventory level is low, especially the demand for terminal products such as TVs and monitors is stable. Although the demand for laptops may be slightly lower than that of the first half of the year, overall, we are cautiously optimistic about the shipment of polarizers this season, and the pressure of previous price declines has been greatly relieved.
Ming Base Materials was hit by the impact of the new crown pneumonia at the beginning of this year, and its revenue once experienced a 10% annual recession, but it returned to the growth track since March, and its performance improved quarter by quarter. The consolidated revenue in the first half of the year was NT$7.164 billion, an increase of 1.6%.
Looking ahead to the second half of the year, Chen Jianzhi, chairman of Mingji Materials, said that production capacity will continue to be full in the near future, and the third and fourth quarters will continue to increase production capacity through bottlenecks. It is estimated that the total production capacity this year will increase by 5% to 10% compared with last year.
Chengmei Materials
Chengmei Materials said that the price of polarizers had been under pressure before. With the recent increase in panel prices, the pressure on polarizers to fall is no longer there. The company's capacity utilization rate in the first half of the year is about 70% to 80%, and this quarter will grow significantly with the hot market demand.
Chengmei will no longer merge the revenue of Kunshan Chimei in mainland China this year, resulting in a recession of more than 44% in the first half of the year, down to NT$4.306 billion compared with the same period last year.
Company stated that Chengmei Materials' debt negotiations have been delayed for one year, and accounts receivable from Kunshan Qimei have been recorded monthly, Chengmei Materials' current financial difficulties have been lifted. Due to the increase in Japanese TV customers, the demand for laptops, and the verification of small and medium-sized products has been passed one after another, orders will gradually increase in September. There will be a chance to reach full load in the fourth quarter, and strive to turn losses into profits in a single quarter.
polarizing film factory Chengmei Materials said that the company has received additional orders for polarizers for TV panels in Japanese panel factories. If the upstream raw material factory can fully supply it, it is expected that the production capacity will be fully loaded in the fourth quarter.
Chengmei Materials pointed out that the Taiwan factory has 4 production lines, mainly producing polarizers for information electronic product panels, but also supplying Japanese panel manufacturers' TV panel polarizers. The Kunshan factory mainly uses polarizers for mainland TV panels, and is well separated from the Taiwanese factory.
Chengmei Materials stated that it originally held about 49.5% of the Kunshan factory, but expanding the second production line requires huge funds. It can only find local funds in mainland China to participate in cash capital increase and provide funds. Therefore, Chengmei Materials currently only holds about 38.5% of the Kunshan factory.
Global polarizer pattern
has continued since the second half of 2018 to the present, and the polarizer market in the mainland is in short supply. Some industry insiders believe that this tight demand situation will continue until 2022, and the demand is huge. Manufacturers in mainland China, Taiwan and Japan are all fighting for this cake.
It is understood that Nitto Electric's current market share can still reach about 23.1%, with an annual production capacity of 180 million square meters, followed by LG Chem's market share of 18.6%, with an annual production capacity of 145 million square meters, ranking third with a third largest Sumitomo Chemical , with a market share of 17.2%, with an annual production capacity of 134 million square meters.
The three manufacturers all had production capacity of more than 100 million square meters in 2018, making them global first-tier manufacturers.
is followed by Samsung SDI, Chengmei, Benmain and Lite Optoelectronics. Among them, Samsung SDI and Chengmei have exceeded 10%. Taiwanese manufacturers Chengmei and Benmain have used their geographical advantages and price advantages to quickly replace the Japanese manufacturers' position in the mainland market.
In recent years, mainland manufacturers Shengbo Optoelectronics and Sanlispot have also launched production expansion actions. Relevant sources revealed that Shengbo Optoelectronics' annual production capacity reached 15.5 million square meters last year, and will increase to 20.5 million square meters this year. The expansion target for 2020 is 36.5 million square meters, an increase of 135%.
Compared with Shengbo Optoelectronics, Sanlispot's annual production capacity has exceeded 20 million square meters, and a total of 5 polarizer production lines have been put into operation.At present, the company's customers have also covered first-line panels and module factories such as BOE and Huaxing Optoelectronics . Volkswagen Securities News even stated that according to the industry structure, Sanlipu's potential revenue space in the future is expected to reach 5-10 billion yuan.
Since the polarizer production line sold by South Korea's LG Group has been bought by China's Shanshan Group , the future market competition will face more powerful Chinese polarizer operators.
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